Resolution No. 80211
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RESOLUTION NO. 8021
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AGREEMENT -BY AND BETWEEN THE CITY OF VERNON AND
LOS ANGELES COUNTY ECONOMIC DEVELOPMENT CORPORATION
FOR CONSULTING SERVICES
WHEREAS, the Utilities Department is proceeding with its
application before the California Energy Commission for the Power Plant
Project; and
WHEREAS, as part of the application process for the Power
Plant Project, the City is required to collect substantial data on
people employed by businesses in Vernon; and
WHEREAS, the City of Vernon intends to retain the consulting
services of Fairbanks, Maslin, Maullin & Associates to assist the City
in collecting such data; and
WHEREAS, once the data is collected, the City of Vernon
needs the services of a consultant to analyze the data collected and
prepare an economic impact study to quantify Vernon's economic impact
on the Southern California region; and
WHEREAS, the City's staff has determined that California
Economic Research Center aka Los Angeles County Economic Development
Corporation (LACEDC) possesses the knowledge necessary to assist the
City in connection with the study; and
WHEREAS, by letter dated June 27, 2002, Bruce V.
Malkenhorst, City Administrator/City Clerk, has recommended that
LACEDC be retained to provide an economic study for the City; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
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Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to enter into a contract with LACEDC for an economic impact
study to enhance services provided to the Vernon community.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Agreement with California Economic Research Center aka
Los Angeles County Economic Development Corporation, a copy of which
is attached hereto as Exhibit "A" and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute said Agreement for,
and on behalf of, the City of Vernon.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to send one fully executed
Agreement to:
Los Angeles County Economic Development Corporation
Attn. Lee K. Harrington, President
555 S. Flower St., 32nd Floor
Los Angeles, CA 90071
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SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 3rd day of July, 2002.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
EONIS C. MAL RG, Ma r
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8021, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, July 3,
2002, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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EXHIBIT
AV
JUL-02-2002 TUE 01:11 PM OLIVO & PLASCENCIA FAX NO. 562 869 1883 P. 01
Jul-02-2002 1131am Fra-LAEDO 213-622-7100 T-92T P.002/010 F-413
THIS AGREEMENT, executed in duplicate at Vernon, California, is made by and between the
CITY OF VERNON, CALTFORNIA, hereinafter referred to as the "Client", and CAUFORNIA
ECONOMIC RESEARCH t l'TER AWA. LOS AN'GELES COUNTY ECONOMIC DBVFLOPM£sNT
CORPORKTION, a California non-profit corporation, hereinafter refeirod to as tha " CgnsWt=e'.
WR AS, The Client and the Consultant have entered into at Agreement which authorizes the
Consultant to provide cortaia services,
NOW THEREFORE, in consideration of the mutual covenants and premises contained herein, the
Client and Consult= agree as follows:
1. ,Wtomeat_ of Work and S+ci jg
The Consultant shall perform and provide services on a projeot basis. TM services to be provided
and the payment terms axe set forth in the Statement of "Work and Schedule and any amendments
thereto, which is attached hereto as Attachment I and by this reference incorporated hmiai. The
rigbts Arid obligations of the parties to this Agreement shall he o4bject to and governed by said
Statement of Work and Schedule as w4v 11 As by the general provisions herein,
2. Eq=gnt U the Consultant
The Client shall pay to the Consultant the amount as specified in the Statement of Work an d
Schedule for completo and satisfactory performance of the terns of this Agreement. Consultant
will present Client with invoices that include the following;
a. The date the work was performed.
b. The, Work aec"llshed.
3. 'I7'Gffornance
The term of this Agreement shall commence ou ,Tuly 1, 2002 and end on October 31, 2002, This
Agreement =y be tennimted by the Client at any time within the period of its duration upon
written notice by the Client to the Consultant or immediately for cauw,
.Any change in the teams of this Agreement, including chenbes is The services to be paformed by
tho Consultant and any increase or decrease in the amount of comprnuation which is agreed to by
the Client and the Consultant shall be incorporated into this Agreement by a writrcn amendment
properly executed by both parties,
JUL-02-2002 TUE 01:12 PM OLIVO & PLASCENCIA
Jul-02-2102 11:51am From-LAEDC
FAX NO. 562 869 1883
P. 02
213-622-rio0 T-12T P.003/010 F-40
S. )ertnits and Licen
The Consultant: shall 'hold valid permits, licenses, certificates and other documents as are required
by the State, Couray, City. or other govcrnmearal or regulatory body to legally ensage In and
perform the services to be provided under this Agreement.
G. rnde�pl"onr SYus
At all times during the term of this Aliment, Consultant shall be an independent contractor and
shall not be an. employee of the Client. The Client shall have the right to control Consultant only
insofar as the results of Consultant's services rendered ptnlsuant to this Agmement; however, the
Client shall not have the right to control the mcau-s by which Consultant accomplishes services
tendered pursuant to this Agreement except to the extesit that such services involve the use of
Client pwImly. lr Xcept as the Client may specify in writing, Cousultauu shall have no authority,
express or implied, to act on behalf of the Client in any capacity whatsoever as an aseor.
Consultant shall have no authority, expressed or implied, pursuaLm to this Agreement to bind the
Chout to any obligation, whatsoever. Federal, State and local taxes shall be the responsibility of
the Consultant as an independent contractor and not as as employos of Client.
7. 6si�tne-z. ax Trans _ r terest
The Consultant shall not assign or trmsfer any interest in this Agreement without the prior writren
consent of the Client.
8. DiscJTTLiiLa �Oolu'b 4
The Consultant shall not discriminate against any employee or subagent because of race, color,
religion, sex, age, national origin, sexual preference or physical condition.
9. jwkannim YAahility�waad Insu► .e Ha4t menu
a, I'he, Consultant agrees to hold harmless the Client, its officers, employees and assigns,
apinst any and all claims arising from acts, omissimu, or negligence of the Consultant, its
officers or employes.
b. The Consultant shall secure a policy of professional axed general liability insurance in the
mirzicAura amount of S 500,000 prior to the commencement of perfbmiance trader this Agreement,
Such covet-ag6 shall be maintained in full force effective until receipt of final payment udder the
terms of thin Agrmuent and "piration of applicable warranty periods.
SUL-02-2002 TUE 01:12 PM OLIVO & PLASCENCIA FAX,NO, 562 869 1883 P,.03
Jet-02-2002 11:51am FrwLAFDC 219-B2R-7100 T-627 P-004/010 F-413
W. Q'=10iance vith5tattrtcg tit Re u1&lions
In the performance of this Agreement, the Consultant shalt obey all laves of the United. States, the
State of California and the ordinances, rcgula Lions, policies and municipal code provisions of the
City of Vernon, including, but not limited to provisions pertaining to hours of employment and
componsaticr a therefor, preferential employment of United States citizens and Vernon residents,
and the rondisci:imirtation provision of the Los Angeles Administrative Code, Section 10,8,
Upon completion of the project or termination of tilts Agreement, pursuant to Section 2 of this
,A,groenient, and if the Client so desires, the Cons0tant shall deliver to the Client copies of an
back-up files used in the project, which are not already in the Client's possession
12, Agge,ss.to_WorkP u t
Ilia. Client shall have: aces at all times to the work product of the Connsultant hereunder,
whenever it is in preparation and progress.
13. imminatitL11.
This Aqv=ent may be terminated. For the convenience of either party without cause, upon giving
30 days written notice to the tither party. If this Agreement is so termi wed, then the Consultant
shall cease Author work as of the date of termination W shall be paid for the services
satisfactorily performed to the date of termination upon delivery of work products, data and other
information complied or developed to the data of termination,
15. Xd—e-es
Notices to be given between the Client and the Consultt slaall be in writing and maybe served
by depositing such noticos iu. the [united States Mail. Postage prepaid, registered or certified, mail,
a(Wessed as follows:
To Consultant., Califbmia Economic Research Center a/lrla LAEDC, 515 South Flower Street,
3r4 Floor, Los Angeles, CA 90071, Attention: President.
To Client. City of Vema, Attention: Bruce V. Malkenhorst, City Administrator, 4305 Santa Fe
Avenue, Vrmon, C.alifortiia 900$8
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JUL-02-2002 TUE 01:12 PM OLIVO & PLASCENCIA
Jul-02-2002 11:52am From-LAEOC
FAX NO. bb2 bby 1bbJ r. Ulf
E12422-7100 S-62T P.005/010.`F-413
16. edlale
'projecl schedules are an impormnt factor in the performance of the work completed by ties
.AsmMent Arad the Consultant agrses to make every reasonable effort to masutain the proposed
schedule with professional conduct, reliability arA accuracy required due to the nature of the
t=hnioal work.
17. Cam em
This Agreement eonW= the full and camplete kgrc==j beween the: two parties. No Prior or
subsequent verbal apement or conversation with any O ew ar =Vloyce o' either party shall
affect or modify any of the teams and con4tions of this Agreement.
4
A-0272002 TUE 01:12 PM OLIVO & PLASCENCIA FAUO. 662 869 1883 P..05
J41-02-2002 11:52an FrwLAEOC 219-622-7100 T-627 P.006/010 F-413
IN WMeSSES Vi HE` Ctr, the Client and the Consultant has caused this Ag=nent to be cxecutod by
their duly authorized repremematives.
Executed rhis,I., Day of .,!.., , 2(} .
FOR: L.os Angeles, County
Economic Development Corporation
By:
Ir'OK—
Hauiagtoll, -Presid
Attest: T
(Corporate Secretary)
weroat Revenue No, 95-3643339
EXpira ion Date: OGtobi:r 31, 2002
Executed this ....... Day of......., 20.1......
FOR: City of Vernon
By:
iemi.s C. Malbm-& Mayor
Atiest:
Bruce V. Malicnhorst, City Clark
Approved as to FOIm:
Eduardo Olivo, City Attoracy
PI
JUL-U2-2UU?
M-02-2002 11 Mam From-LAEDC m-GuLT100 T-627 P.007/91a ,•F-41I
A'I-fACMMENT i - STATEMENT OF WORK AND SCHEDULE
Professional Services Afire meat Between
I.,os Angeles County Economio Development Corporapan
AND
City of V=on
],. pnSlljtarli��'iei"ViCc�s
During the Time of Performance, as Sat forth in item I Of this Agreement, the Consultant eha11
provido the following; services:
a, SeL, Attached gcppe of Sffvice -- A t "A"
2. WQrk Schedule
The foregoing sorviees shall be provided by the Consultant in accordance with the following
schedule:
a. Scolitached Scope of Se ice -- AnachmMLA"
3. (omoons�ation
Total Cost -- Not to axceed $24,500
Payment Terms- First Payment of $13,000 duo on August 1 (or 30 days after notice to proceed),
Second and Final payment of $11,500 upon completion of project and delivery of work product,
R• �
FOR: Los Angeles County
Economic Devclopinent Corporation
av-
6
JUL-02-2002 TUE 01:13 PM OLIVO & PLASCENCIA
Jul-02-2002 11:52tm From -LAM
FAX N0. 562 869 1883 P. 07
213-622-Tide T-62T P.008/810 F-413
PON PIE 6A nialON
!qs A,l901rs
EcOaDMIC
06volopm8114
Corporation
Project Description
CITY OF VERNON
Scope of Services
June 21, 2002
LAACHMENT A
The California Economic Research Center, the consulting arm of the Los Angeles
County Economic Development Corporation (LACEDC) is pleased to submit this
proposal to prepare an oconomio impact study that addresses these questions: (1)
"WliAt is the ecouoxtue impact of the activities carried on by the business fine*
employees- — th public and private —and local govemmeut of the City of
Vernon?" and (2) "'W'here is the impact of employes spec ing most likely to be
felts
The, LAEDC" will assemble appropriato baseline statistical data and pecfotm the
necessary research and analysis to describe and quantify Vernon's econOnft
impact on the Los Angeles region. In addition. LAEDC will analyze the
responses to an upcoming City -sponsored survey of VOMOA employers to
ascertain where employees who work in the City reside and thereby to derennine
whem they are likely to spend much of the incomes they earn within tho City of
Vernon.
015 S. klowcr Sa.
1W Floor Approach
Los Ang,-6s. CA L.A. C's proposal inclades fivo separate tasks, outiined below:
�p0a y
1. ustn► sum. 'fhe regional economio impacts of individual industries
located hi Vernon differ depending on:
i. blow much firms in the industry spend locally on
"X"olapine purchases of needed materials and supplies,
213.E 2.�30o ii. How many workers they employ, and
iii How much these workers aatn on an annual basis.
The LAEDC will assemble the.information required to aualyxe The City's
1"acsimiis industry structure, including "total' data, for all inc t shies locattd in
l .s?a.7ioo Vernon as well as indusuy-levol data for the most importtlnt industries in
the city. Details to be provided for each industry will include: appropriate
SIC/NAICS codes, number of fims/csMblishments, and number of
eraployecs.
2. �c�;m. pit. Using its proprietary in-house rnodcl the LAEDC WM
wiimate the direct and indirect economic impoo't Of V'=On's rPjor
industries and in total. The threat impact refers to the impact of each
industrytr 's activities on other industries in Los Angeles County who supply
fins ir< the iudustty with m.aterial8, transportation services, eta The
JOL-02-2002 TUE 01:13 PIS OLIVO & PLASCENCIA
Jul-02-2002 11:53n FrarrLODC
FAX NO. 562 869 1883
21`s-5a-7100 1-827 P.00'i/01D ' F=dig "
city of Vernon
Scope. of Sdrvices
Junc 21, 2002
indirect impact measures the impact of spending by employees wbo work is
Version. LAl«DC's impact estimates will include the following measures: the
number of direct and indirect jobs that are attributable to tbO activitics of firms
located in Vernon, the estimated wage and salary ineOwes emrned by the direct
and indirect woxk rs, and estimated spending on sates -taxable goods and
services by the direct and indirect workers.
3, 1iseal iixrnacts, LAEDC will utilize its in-house revenue model to estimate the
amomits paid by the direct and indirect workers in Personal iucama taxes to the
State of California as well as the amounts paid in saxes taxes to the state,
county quad municipal governments.
4. i jgl at►alysir govcrnreent: In addition to the private sector, the activities
of Vernon's city govenunem also genemte economic impacts. LAEDC will
include these impacts in its researoh results if'the City provides the appropriate
data. The infonatation requited to perform the analysis includes: the number
of workers employod by the City and the size of the City's total payroll in
dollars, the number of city electric utility workers and their payroll, the size of
the City's total budget broken down by major function, and The amounts spent
by the City on construction projects (bout ordinary maintcsaaace & repair and
special projects).
5. e1K11t1.,jkIJ)Mis=iMRacr .gco r h : The City of Vernon is 6lrort,401ing a
questioru airs survey "ng its employers for 71P code infonnation on the
homes of their employees. When this sttrvey bas been completed, LAEDC will
analyze the responses and prepaae a report that describes the sufvey results.
","loose will show in which oities V'ernon'& employees reside, 'These cities
rcocive much of the revenues associated with the employ" activities,
ineluditig property taxes on owner -occupied homes and the local lovemme~pt
share ofrctail sales taxes,
Timaline
LAMC estimates that cotnplcting tlds study with both special aualyses will require two
moanhs. Collecting and compiling the govemniont and industry -level information istta
the btdustry Structure fomat will require at least two weeks. Another two weeks will be
needed to cu.stomize LAEDC's in-house models for'Vernon and to "exercise' theta with
tbo City's specific industry information. Analysis of the models' results as well as those
of the caitployer survey -when it has been completed --will require at loAst tWO mote
weeks, Prepantion Qf the final reports will require another two weeUs. LAEDC
understands the City's desire for prompt access to our research results and will endeavor
to complate thcso tasks early, if at all possible_
Vernon`Scope.doc Page 2
JUL-OZ-2b02 TUE 01:14 PM OLIVO & PLASCENCIA
101-02-2002 11:53am From-LAEDC
FAX NO. 562 869 1883 P. 09
21s-6h-7160 T-627 P.010/010� F416'
City of Vemn
Scope, ofServices
r1Jne 21, M02
Deliverable&
The LAEJ)C': will deliver to the City of Vernon too reports prescnting the results of the
aforemoidoriesd rescareh and analysis. The first oT core report will describe the economic
and revenue impaets generated by activities of 'V ernou"s business firms, its governxa cemt
(if the City chooses to includc Task 4 io This project), and their employees o1a the Los
,Angeles region. The second report will report rbe results of the survey analysis,
indicating vrhid cities contain the bulk of Vernon's employees and therefore receive the
tax benefits associated with their activities.
Cost estimate
The total cost of this study will be MOON if both special analyses are includcd. The
cost for each Wdividu4l, study components is listed below;
> The care report (Taste t through Task 3) $16,500
> The government analysis (Task 4) $ 4,500
➢ The survey analysis (Task 5) $ 31500
V tnon Sc-opc.dac: Page 3
SUPPORTING
DOCUMENTS
THIS AGREEMENT, executed in duplicate at Vernon, California, is made by and between the
CITY OF VERNON, CALIFORNIA, hereinafter referred to as the "Client", and CALIFORNIA
ECONOMIC RESEARCH CENTER A/K/A LOS ANGELES COUNTY ECONOMIC DEVELOPMENT
CORPORATION, a California non-profit corporation, hereinafter referred to as the "Consultant".
WITNESSETH
WHEREAS, The Client and the Consultant have entered into an Agreement which authorizes the
Consultant to provide certain services,
NOW THEREFORE, in consideration of the mutual covenants and premises contained herein, the
Client and Consultant agree as follows:
AGREEMENT
1. Statement of Work and Schedule
The Consultant shall perform and provide services on a project basis. The services to be provided
and the payment terms are set forth in the Statement of Work and Schedule and any amendments
thereto, which is attached hereto as Attachment 1 and by this reference incorporated herein. The
rights and obligations of the parties to this Agreement shall be subject to and governed by said
Statement of Work and Schedule as well as by the general provisions herein.
2. Payment to the Consultant
The Client shall pay to the Consultant the amount as specified in the Statement of Work and
Schedule for complete and satisfactory performance of the terms of this Agreement. Consultant
will present Client with invoices that include the following:
a. The date the work was performed.
b. The work accomplished.
3. Time of Performance
The term of this Agreement shall commence on July 1, 2002 and end on October 31, 2002. This
Agreement may be terminated by the Client at any time within the period of its duration upon
written notice by the Client to the Consultant or immediately for cause.
4. Amendments to Agreement
Any change in the terms of this Agreement, including changes in the services to be performed by
the Consultant and any increase or decrease in the amount of compensation which is agreed to by
the Client and the Consultant shall be incorporated into this Agreement by a written amendment
properly executed by both parties.
5. Permits and Licenses
The Consultant shall hold valid permits, licenses, certificates and other documents as are required
by the State, County, City, or other governmental or regulatory body to legally engage in and
perform the services to be provided under this Agreement.
6. Independent Contractor Status
At all times during the term of this Agreement, Consultant shall be an independent contractor and
shall not be an employee of the Client. The Client shall have the right to control Consultant only
insofar as the results of Consultant's services rendered pursuant to this Agreement; however, the
Client shall not have the right to control the means by which Consultant accomplishes services
rendered pursuant to this Agreement except to the extent that such services involve the use of
Client property. Except as the Client may specify in, writing, Consultant shall have no authority,
express or implied, to act on behalf of the Client in any capacity whatsoever as an agent.
Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind the
Client to any obligation whatsoever. Federal, State and local taxes shall be the responsibility of
the Consultant as an independent contractor and not as an employee of Client.
7. Assignment or Transfer or Interest
The Consultant shall not assign or transfer any interest in this Agreement without the prior written
consent of the Client.
8. Discrimination Prohibited
The Consultant shall not discriminate against any employee or subagent because of race, color,
religion, sex, age, national origin, sexual preference or physical condition.
9. Indemnity, Liability. and Insurance Requirements
a. The Consultant agrees to hold harmless the Client, its officers, employees and assigns,
against any and all claims arising from acts, omissions, or negligence of the Consultant, its
officers or employees.
b. The Consultant shall secure a policy of professional and general liability insurance in the
minimum amount of $ 500,000 prior to the commencement of performance under this Agreement.
Such coverage shall be maintained in full force effective until receipt of final payment under the
terms of this Agreement and expiration of applicable warranty periods.
10. Compliance with Statutes and Regulations
In the performance of this Agreement, the Consultant shall obey all laws of the United States, the
State of California and the ordinances, regulations, policies and municipal code provisions of the
City of Vernon, including, but not limited to provisions pertaining to hours of employment and
compensation therefor, preferential employment of United States citizens and Vernon residents,
and the nondiscrimination provision of the Los Angeles Administrative Code, Section 10.8.
11. Ownership of Documents
Upon completion of the project or termination of this Agreement, pursuant to Section 2 of this
Agreement, and if the Client so desires, the Consultant shall deliver to the Client copies of all
back-up files used in the project, which are not already in the Client's possession.
12. Access to Work Product
The Client shall have access at all times to the work product of the Consultant hereunder,
whenever it is in preparation and progress.
13. Termination
This Agreement may be terminated for the convenience of either party without cause, upon giving
30 days written notice to the other party. If this Agreement is so terminated, then the Consultant
shall cease further work as of the date of termination and shall be paid for the services
satisfactorily performed to the date of termination upon delivery of work products, data and other
information complied or developed to the date of termination.
15. Notices
Notices to be given between the Client and the Consultant shall be in writing and may be served
by depositing such notices in the United States Mail. Postage prepaid, registered or certified mail,
addressed as follows:
To Consultant: California Economic Research Center a/k/a LAEDC, 515 South Flower Street,
32"d Floor, Los Angeles, CA 90071, Attention: President.
To Client: City of Vernon, Attention: Bruce V. Malkenhorst, City Administrator, 4305 Santa Fe
Avenue, Vernon, California 90058
16. Schedule
Project schedules are an important factor in the performance of the work completed by this
Agreement and the Consultant agrees to make every reasonable effort to maintain the proposed
schedule with professional conduct, reliability and accuracy required due to the nature of the
technical work.
17. Complete Agreement
This Agreement contains the full and complete Agreement between the two parties. No prior or
subsequent verbal agreement or conversation with any officer or employee of either party shall
affect or modify any of the terms and conditions of this Agreement.
4
IN WITNESSES WHEREOF, the Client and the Consultant has caused this Agreement to be executed by
their duly authorized representatives.
Executed this. J- .. Day of .. Z... , 20DR. Executed this n .... Day of J .., 200'2- -
FOR: Los Angeles County
Economic Development Corporation
01
By:
Le K. Harrington, Preside
Attest: -1 V I % 2-
(Corporate Secretary)
Internal Revenue No. 95-3643339
Expiration Date: October 31, 2002
FOR: City of Vernon
By:
Leonis C. Malbur�g/ayor
Attest: G'
Bruce V. Malkenhorst, City Clerk
App d as to Form:
Eduardo Olivo, City Attorney
E
ATTACHMENT 1 - STATEMENT OF WORK AND SCHEDULE
Professional Services Agreement Between
Los Angeles County Economic Development Corporation
AND
City of Vernon
1. Consultant Services
During the Time of Performance, as set forth in item 3. of this Agreement, the Consultant shall
provide the following services:
a. See Attached Scope of Service - Attachment "A"
2. Work Schedule
The foregoing services shall be provided by the Consultant in accordance with the following
schedule:
a. See Attached Scope of Service - Attachment "A"
3. Compensation
Total Cost - Not to exceed $24,500
Payment Terms- First Payment of $13,000 due on August 1 (or 30 days after notice to proceed),
Second and Final Payment of $11,500 upon completion of project and delivery of work product.
AGREED:
FOR: Los Angeles County
Economic Development Corporation
By:
Date: (4 ! 0oa-
6
ATTACHMENT A
ECONOMIC DEVELOPMENT
FOR THE LA REGION
Los Angeles
CITY OF VERNON
Scope of Services
June 21, 2002
Project Description
The California Economic Research Center, the consulting arm of the Los Angeles
County Economic Development Corporation (LACEDC) is pleased to submit this
proposal to prepare an economic impact study that addresses these questions: (1)
"What is the economic impact of the activities carried on by the business firms,
employees —both public and private —and local government of the City of
Vernon?" and (2) "Where is the impact of employee spending most likely to be
felt?"
Economic The LAEDC will assemble appropriate baseline statistical data, and perform the
Development necessary research and analysis to describe and quantify Vernon's economic
Corporation impact on the Los Angeles region. In addition, LAEDC will analyze the
responses to an upcoming City -sponsored survey of Vernon . employers to
ascertain where employees who work in the City reside and thereby to determine
where they are likely to spend much of the incomes they earn within the City of
Vernon.
515 S. Flower St.
32nd Floor Approach
Las Angeles, CA
Los i LAEDC's proposal includes five separate tasks, outlined below:
1. Industry structure. The regional economic impacts of individual industries
located in Vernon differ depending on:
i. How much firms in the industry spend locally on
21.622. Telephone e purchases of needed materials and supplies,
.622.430o I How many workers they employ, and
iii. How much these workers earn on an annual basis.
The LAEDC will assemble the information required to analyze the City's
Facsimile industry structure, including "total" data for all industries located in
213.622.7100 Vernon as well as industry -level data for the most important industries in
the city. Details to be provided for each industry will include: appropriate
SIC/NAICS codes, number of firms/establishments, and number of
employees.
2. Economic impact. Using its proprietary in-house model, the LAEDC will
estimate the direct and indirect economic impact of Vernon's major
industries and in total. The direct impact refers to the impact of each
industry's activities on other industries in Los Angeles County who supply
firms in the industry with materials, transportation services, etc. The
City of Vernon
Scope of Services
June 21, 2002
indirect impact measures the impact of spending by employees who work in
Vernon. LAEDC's impact estimates will include the following measures: the
number of direct and indirect jobs that are attributable to the activities of'firms
located in Vernon, the estimated wage and salary incomes earned by the direct
and indirect workers, and estimated spending on sales -taxable goods and
services by the direct and indirect workers.
3. Fiscal impacts. LAEDC will utilize its in-house revenue model to estimate the
amounts paid by the direct and indirect workers in personal income taxes to the
State of California as well as the amounts paid in sales taxes to the state,
county and municipal governments.
4. Special analysis —government: In addition to the private sector, the activities
of Vernon's city government also generate economic impacts. LAEDC will
include these impacts in its research results if the City provides the appropriate
data. The information required to perform the analysis includes: the number
of workers employed by the City and the size of the City's total payroll in
dollars, the number of city electric utility workers and their payroll, the size of
the City's total budget broken down by major function, and the amounts spent
by the City on construction projects (both ordinary maintenance & repair and
special projects).
5. . Special analysis —impact Reography: The City of Vernon is sponsoring a
questionnaire survey asking its employers for ZIP code information on the
homes of their employees: When this survey has been completed, LAEDC will
analyze the responses and prepare a report that describes the survey results.
These will show in which cities Vernon's employees reside. These cities
receive much of the revenues associated with the employees' activities,
including property taxes on owner -occupied homes and the local government
share of retail sales taxes.
Timeline
LAEDC estimates that completing this study with both special analyses will require two
months. Collecting and compiling the government and industry -level information into
the Industry Structure format will require at least two weeks. Another two weeks will be
needed to customize LAEDC's in-house models for Vernon and to "exercise" them with
the City's specific industry information. Analysis of the models' results as well as those
of the employer survey —when it has been completed -will require at least two more
weeks. Preparation of the final reports will require another two weeks. LAEDC
understands the City's desire for prompt access to our research results and will endeavor
to complete these tasks early, if at all possible.
Vernon_Scope.doc Page 2
City of Vernon
Scope of Services
June 21, 2002
Deliverables
The LAEDC will deliver to the City of Vernon two reports presenting the results of the
aforementioned research and analysis. The first or core report will describe the economic
and revenue impacts generated by activities of Vernon's business firms, its government
(if the City chooses to include Task 4 in this project), and their employees on the Los
Angeles region. The second report will report the results of the survey analysis,
indicating which cities contain the bulk of Vernon's employees and therefore receive the
tax benefits associated with their activities.
Cost estimate
The total cost of this study will be US$24,500 if both special analyses are included. The
cost for each individual study components is listed below:
➢ The core report (Task 1 through Task 3) $16,500
➢ The government analysis (Task 4) $ 4,500
➢ The survey analysis (Task 5) $ 3,500
Vernon_Scope.doc Page 3